Henry and Jones, partners in a sports management consulting firm, budgeted the following professional labor hours for the year ended December 31, 20--:

Partners................................................... 4,000

Associates............................................... 7,000

Staff....................................................... 11,000

Partners have a billing rate of $200 per hour and actually earn $100 per hour. Associates bill out at $120 per hour and earn $60 per hour. Staff has a billing rate of $80 an hour and earns $40 per hour.

Budgeted overhead and other expenses are as follows:

Overhead:

Depreciation—Equipment................ $ 40,000

Depreciation—Building.................... 90,000

Fringe Benefits................................. 190,000

Photocopying.................................... 22,000

Secretarial Support............................ 230,000

Telephone/Fax.................................. 31,000

Utilities............................................. 43,000

Other Direct Expenses:

Travel............................................... $ 54,000

Meals................................................ 18,000

Directions:

1. Using the schedule below, prepare a revenue budget for the year ended December 31, 20--.

2. Using the schedule below, prepare a professional labor budget for the year ended December 31, 20--.

3. Using the schedule below, prepare an overhead budget for the year ended December 31, 20--.

4. Using the schedule below, prepare an other direct expenses budget for the year ended December 31, 20--.

5. Using the schedule below, prepare a budgeted income statement for the year ended December 31, 20--.